From general liability insurance to workers’ compensation, learn how to understand and purchase the right insurance for your cleaning services business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Business Insurance for Cleaning Services
Types of Business Insurance for Cleaning Services
What types of cleaning services need business insurance?
Every cleaning services business can benefit from some form of insurance protection, and basic liability coverage may simply be a requirement of doing business. Whether you are a small independent provider or a large organization, the right business insurance coverage can help you effectively manage risks to your business and provide you, your employees, and your clients with important financial safeguards. Depending on your risk exposures and the specific services you provide, there are a number of basic coverage types you’ll want to investigate, from commercial auto insurance to general liability insurance. Ensuring that your business has comprehensive coverage is an important step in protecting your investments and building for the future.
If your cleaning services business meets any of the following criteria, you should consider purchasing business insurance:
- You work at customer homes or offices
- You handle or work with customer property
- You own or lease office or retail space
- Your business owns or leases vehicles
- Your business owns valuable property, such as specialized cleaning equipment
- You employ others
Business Insurance for Cleaning Services by Profession
Why is business insurance important for cleaning services?
Accidents or unexpected disasters can happen in the course of doing business.
Benefits: Insurance provides financial protection for your cleaning services business. Having insurance coverage can protect the investment of hard work, time, and money that you’ve made in your business when certain kinds of disasters happen. Liability insurance can protect your business financially if it is sued for injuring someone or damaging another party’s property. Property insurance protects the property your business owns if your property is damaged or destroyed.
Risks: Without insurance, a single accident or injury could put your entire business at risk. If your business is unable to come up with the funds to pay for damages or pay the legal fees necessary to defend your business, you may need to sell your business assets or declare bankruptcy.
Clients may require you to carry liability insurance before hiring your business.
Benefits: Your business will work directly with other companies, and clients may want to know interactions are covered from all sides. Having insurance for your cleaning services business can help your business stand out in a crowded market and show clients your organization is legitimate and can be taken seriously.
Risks: If you do not have a protection policy in place, your business is at risk when dealing with clients. If something goes wrong, and the client directly blames your business, legal action may follow. Without insurance, you will be picking up the entire cost of legal representation and any money awarded to the client from you.
Certain types of business insurance may be required in your state.
Benefits: In most states, companies are required by law to carry workers’ compensation insurance. Even in the safest conditions, accidents can happen, which is why insurance is a necessary solution. If an employee is injured while working for you, insurance will cover you financially as well as make your business compliant with the law.
Risks: Without workers’ compensation, your organization is wide open to financial loss should a worker get injured or sick as a direct cause of working for you. Moreover, multiple injuries could lead to financial losses that ruin your business. As many places make employee compensation part of the law, avoiding the coverage can land you in legal trouble resulting in penalties and fines.